- 27 Dec
Need quick financing with very little paperwork? You are at the right place!
NEED QUICK FINANCING WITH VERY LITTLE PAPERWORK? YOU ARE AT THE RIGHT PLACE!
Quick Financing?The purpose of this article is to understand a type of loan called Merchant Cash Advance or Business Cash Advance. This is really a great perk of modern financing and made short-term financing easier for entities. After ready this article you will have a reasonable understanding of Merchant Cash Advance, its benefits over traditional financing or loan, how to apply for Business Cash Advance and limitations & shortfalls of merchant cash advance.
Merchant cash advance is basically a cash advance ( quick financing )on your future credit card sales. This cash advance (full amount) along with the fee & interest is to be paid back to the merchant cash advance provider. However, the payback method in business cash advance is quite attractive for the borrower. This advance is paid back gradually by automatic deductions from your credit card service provider and paid to merchant cash advance provider directly. There is not much paperwork in merchant cash advance and it will take very less time to get. Also, to get business cash advance there is no collateral required for getting the finance. These perks make merchant cash advance a blessing in modern financing world. However, there are few limitations to merchant cash advance too.
Why Business Cash Advance (quick business financing) over traditional financing or loan?
- You can get merchant cash advance (quick financing) in a couple of days but it is not the case in getting a traditional loan from a bank.
- Paperwork is what entrepreneurs and businesses run from, in business cash advance there is very less paperwork required as compared to traditional financing.
- One of the most amazing perks of business cash advance is that it does not require any kind of collateral. This made financing a lot easier.
- credit rating is quite low and you are not able to qualify for traditional finance you can still get merchant cash advance.
- Your business is new and is not able to qualify for bank loan then a business cash advance is for you.
- If you are seeking a very short-term financing then you will prefer business cash advance over any traditional bank loan.
- You need to buy some key asset immediately and don’t have sufficient funds, a business cash advance is for you.
- If you would like to repay a capital amount from future income gradually, then business cash advance best suits you.
3 EASY STEPS TO OBTAIN A BUSINESS CASH ADVANCE:
Step #1: Establishing an account with a qualified Credit Card Processor (You might already have one):
You will be required by most of the companies to have an account with a credit card processor who is contracted with the merchant cash advance company. If you are already working with a qualified credit card processor you can move on to the application.
A merchant cash advance application is quite easy and simple as compared to traditional loan applications. However, they will ask you general questions regarding your income, credit card sales, and experience in the business.
Step #3: Sign the Contract:
You simply need to read and sign the contract after a very simple documentation process is done to complete the merchant cash advance process. While signing the contract, keep in your mind that there is no fixed template of terms and conditions for business cash advance and vary from service provider to service provider. Before you sign anything, you should be 100% sure about what you are agreeing to avoid any future inconvenience. You will get the finance quite soon, as the whole process takes a couple of days.
SCENARIO NOT SUITABLE FOR GETTING BUSINESS CASH ADVANCE:
- If you are a start-up or a new company, you cannot apply for a business cash advance. It requires your credit card sales history. Since there is no requirement of collateral and there are no hard and fast terms & conditions in merchant cash advance financing so your track record of sales is important.
- If you do not like making repayments on your upcoming sales. In other words, gradual payments do not suit your business then you prefer traditional bank loan. Or any other quick business financing.
- If you are in need of a long-term loan or advance then you should not consider the business cash advance. Because it is designed for short-term advances which could be paid from upcoming sales easily.
Merchant cash advance or Quick Financing is a short-term modern financing which could be obtained easily with very low paperwork, on easier terms & conditions, in a very short time of one or two days and without any collateral for financing. Business cash advance offers a very easy repayment method from your future sales on a gradual basis.
Merchant cash advance will be preferred over traditional bank loan or financing to fulfill short-term financing needs but the company needs to have a good track record of sales(start-ups are not even eligible). However, when it comes to long-term financing businesses prefer traditional loans against collateral.
Thank you very much for taking time and reading this article. I really appreciated that!
If you have any questions or suggestions, please feel free to contact us. We would be more than happy to know your thoughts regarding Merchant Cash Advance and answer your questions or clear any confusion.